Sound Outreach launches Credit Up

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Charles Taylor has a clear vision for his success. He has an ambitious spirit and is not slowed down by obstacles. Overcoming the problems that might discourage others is part of what makes him an entrepreneur. Charles recently started a small but profitable business. He has built a network of contacts and has plans for expansion. What he doesn’t have is good credit–an obstacle that’s difficult to overcome with grit alone.

On November 10th, Charles received the first Credit-Builder Loan through “Credit Up,” Sound Outreach’s financial counseling and loan program done in partnership with Harborstone Credit Union. With long-term financial coaching and access to low-cost financial products, Credit Up helps Pierce County residents take control of their finances.

Charles Taylor signing for the first Credit Builder loan at Harborstone Credit Union.

The Credit Builder Loan is a no-fee, $300 loan with a low 3.1% interest rate. The sole purpose of the loan is to build or repair credit by saving the loan money for a period of time rather than spending it. The $300 loan is deposited in a restricted savings account. After it’s repaid, the funds are released to the borrower who, through positive repayment, has improved their credit score. The Credit-Builder is one of five products offered through Credit Up.

In addition to the loan, Charles is meeting with one  of the program’s certified financial coaches to develop and implement his financial plan, which includes opening a checking account at a traditional bank or credit union. After building his credit, he will apply for a small business loan.

Charles’ story shows why this free program is unique and effective: the program combines financial counseling with access to products that are tailored to unlock peoples’ potential. Loans and other financial products are available to participants recommended by one of the financial coaches.

In the coming months, we’ll share more stories about our dynamic partnership with Harborstone as we team up to prepare Pierce County residents, especially those who are unbanked and underbanked, to overcome obstacles to reach their financial goals.

Questions? Interested in meeting with a financial coach or investigating financial products?

Contact Brian Humphreys

253-486-6381

brian@soundoutreach.org

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A $3,000 Story

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Have you ever faced a situation that seemed insurmountable? We helped a family this month at Sound Outreach who had challenges that seemed so overwhelming when they arrived, but by the time they left, they felt compelled to call to thank us for the $3,000 we saved them.

Dan is 56, disabled and on Medicare. Carla, his wife is 34 and is also disabled. Carla had no insurance and hadn’t been able to see a doctor for over two years for her mental health issues. When she married Dan two years ago, she lost her SSI because his disability benefits put them just over the income limit for her to qualify for supplemental income through Social Security.

They came to Sound Outreach looking for Health Insurance for Carla.They left with Washington Apple Health (Medicaid) coverage for Carla which allowed her to get an appointment with a mental health counselor.

We helped them to apply for food benefits and they qualified for $159 per month beginning immediately. We applied for the Medical Savings Program, saving the husband his Medicare Premium payment of $104.90 that was being taken out of his $1,455 check each month.

Visiting our office netted them an additional $263 per month and helped them to gain access to essential medical services for both of them.

We also applied for Extra Help, a federal program that assists with prescription drug coverage, Dan, who is disabled with lung disease, had not been able to afford the medication he needed. Now, he will be able to qualify for insurance that will cover his drug costs and cap his co-pays when he fills his prescriptions at a low cost. We are still working with Dan to find him a no-premium supplemental plan to cover some of the costs Medicare does not cover, but we hope to be able to navigate him through that process providing some peace of mind and some extra money to go towards savings.

Finally, Dan and Carla qualified for utility assistance through the WARM Fund from The Greater Tacoma Community Foundation, which paid $200 toward their electricity bill.

These sorts of things make you feel good about getting up each day to fight the good fight, and we can’t do this kind of work without your support. Thank you.

Jeff Klein
Executive Director